Sheng Siong Group

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@Big Toe good pun on Red Mart Big Grin hope it doesn't happen to Red Dot Big Grin

Groceries delivery makes a lot of sense for big countries that does once a week bulk shopping. There's volume that covers delivery cost. Once upon a time there were talks of smart refrigerators that does on the fly inventory so if your eggs running low it will automatically send a request to online grocers to deliver eggs. Really... sending a pack of eggs... that's what I call a bad business model 字上谈兵. But for small places like Singapore not much except for bulky items like rice and drinks makes sense.

End of day the model has to be sustainable after initial red ink. If Uber didn't call it a day I'm not sure if Grab can survive until now and IPO. Amazon model is simple and yet seems like people keep missing it: It targets zero profitability (at least in first 20 years) You can have zero profit for 20 years but you can't sustain a loss making enterprise. Simple maths

In another thread I have voiced my skeptism on bicycle rentals cause there's no ownership. But the big idea for Ali Baba or Tencent or Meituan (ATM) is not the bicycle rental. It is to push digital and handphone payment. So while the investors in these bicycle orgies licked their wounds, the purpose of the trio ATM is achieved and it's just marketing expense to them well spent. Strategy is important
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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Ten years of low interest rate and ever-growing piles of investment dollars continues to fuel many tech and non-tech start-ups.

The general impact that the increased tech and non- tech competition has on incumbent businesses is undoubtedly negative. Though some of the less sexy businesses were lucky that they had no new competition (e.g. Gardenia).

Sheng Siong and FairPrice has done very well even as Red Mart and other forms of online shopping become more popular. Even traditional entrants like Hao Mart will unlikely become a threat to SS. Cold Storage and Giant does not seem to be regaining its lost market share.

SS has come a long way since its listing, and if it continues to remain competitive, it can still grow plenty by taking more market share from its competitors. There is enough to do in SG to keep them busy for the next 10 years; no need to venture overseas.

In the local F&B space, Burger King, Popeyes, Swensens, Bali Thai (and So Pho), KFC, and Breadtalk (not TB) has done poorly and looks to continue that way for the foreseeable future. Astons, Collins, Swee Heng, and White Beehoon are the rising stars. Guzman Y Gomez will probably be gone in the years to come.
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I thought Guzman is often very crowded.
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The article below provides an analysis on the community group buying (CGB) trend in China.
https://thechinaguys.com/chinas-tech-gia...up-buying/

Main points are:
1) In particular, the market value of community group buying more than doubled in 2020 to US$11.5 billion, as digitally-inclined consumers were quick to embrace the conveniences offered by the online grocery retail model during lockdown.
2) The role of the community leader within CGB fundamentally changes the economics. As it is the leader who is incentivized to acquire customers and maintain them through their social network, the marketing costs for tech companies associated with these tasks is significantly reduced. . The community leader is a critical piece of the CGB model as they act as the sole intermediary between the e-commerce platforms and community buyers. Community leaders are responsible for creating the group chat, gathering customers, placing and picking up the order, and distributing the items to the community. They typically receive a 10% commission on the value of each order—occasionally more—as tech companies subsidize community leaders’ services to build loyalty toward their platform. Customer conversion rates via Wechat community groups are also higher, reaching up to 10% compared to 2-3% on dedicated e-commerce platforms.
3) Furthermore, the delivery of a single bulk order and distribution handled by the community leader significantly shortens logistical chains while allowing for wider margins. The promising unicorn start-up, Xingsheng Youxuan, reported that costs for home delivery grocery models runs from CN¥7 to 10 (US$1.08 to US$1.55) per order, while CGB greatly reduces the logistics cost to an average of approximately CN¥1.5 (US$0.15).
4) So far, CBG has been a big win for all those involved: customers can conveniently purchase groceries at a bargain through contact-free channels, online platforms reap wider margins with shorter logistics chains, and community leaders pick up a profitable side gig to supplement income.
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